Temasek Holdings has purchased a 17-18% share in VFS Global for $950 million, valuing the company at $5 billion in equity. The deal follows Blackstone’s earlier acquisition of a 75% stake and reflects growing optimism related to global travel.
Temasek Holdings Pte. Ltd of Singapore has finalized an agreement to acquire a 17-18% stake in VFS Global Services Pvt. Ltd, a visa outsourcing firm backed by Blackstone Inc., for $950 million. This acquisition assigns an equity value of $5 billion and an enterprise value of $7 billion to VFS Global, as reported by individuals familiar with the arrangement.
VFS Global, headquartered in Zurich and Dubai, specializes in providing administrative solutions for governments in processing passport applications and visa services. Established in 2001 by Chief Executive Zubin Karkaria, VFS has managed over 294 million applications, marking its significant involvement in the visa processing sector, particularly in India.
This strategic investment by Temasek into VFS Global underscores the potential for revenue enhancement fueled by rising global travel demand and VFS Global’s stable market position. With plans for an eventual listing and existing significant contracts, the stakes involved highlight the optimism surrounding future profitability.
Original Source: www.livemint.com
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